Skip to content Skip to main navigation

Business

We mean business
Contact us today to get results

Club Lime owner Viva Leisure to list on ASX in bid to keep growing

Ian Bushnell 8 May 2019

A Club Lime facility in Kambah. Owner Viva Leisure will use its public listing to continue expanding.

Viva Leisure Limited, the owner of Club Lime in the ACT and a leading operator of health clubs and aquatic facilities in Australia, is seeking to become the only health club group listed on the Australian Securities Exchange (ASX) after submitting its prospectus and listing application for an Initial Public Offering (IPO).

Viva Leisure, which began operations in the ACT in 2004, plans to raise $20 million as part of its IPO with the proceeds to be used to support its business model, fund expansion opportunities, provide working capital and pay the costs of the offer.

In particular, part of capital raising will be used to fund the acquisition of Fitness 24/7, a regional business with two health clubs in Albury (NSW) and one health club in Wodonga (Victoria), bringing Viva Leisure’s total operating locations to 33 with a further 15 greenfield locations in various stages of opening.

Viva Leisure expects to have 48 operational locations within the next 12-15 months.

The company says its vision is to become the number one health, fitness and aquatic centre operator in the market through expanding its geographical reach via organic growth and considered acquisitions, continuing to invest in its unique business model and increasing the product and service offerings to its members, who are core to the business.

“The purpose of the IPO is to provide Viva Leisure with access to capital markets and added financial flexibility to pursue further growth opportunities and create a liquid market for its shares,” Viva says.

Viva Leisure founder, CEO and Managing Director, Harry Konstantinou said the bid to go public marked a significant milestone for the company and the health and leisure industry in Australia.

“My board and I are delighted with the strong level of investor interest and support for our IPO. Being the only health club group listed on the ASX would be a significant opportunity to introduce the industry to new investors,” he said.

“Viva Leisure operates a successful, innovative, leading technology-based disruptive health club business driven by an experienced management team and board of directors.”

Viva Leisure was the first health club operator in Australia to offer clubs in all four segments within the health and fitness industry, including 24/7 ‘express’ sized clubs, boutique clubs, regular sized clubs and ‘big box’ clubs.

It has over 47,500 members and currently also operates facilities in the ACT and regional NSW including Goulburn, Wollongong and Wagga Wagga.

Once listed, Viva Leisure is expected to have a market capitalisation of $52.6 million. The group expects to generate $46.8 million of revenue for the 2020 financial year and $11.4 million of earnings before interest, tax depreciation and amortisation.

The company says in its pitch to the market that it is the leading candidate to exploit the unconstrained enterprise growth opportunity in the industry, and is a scalable and bespoke business model with strong branding.

Viva says it’s technology-focused business provides it with a competitive advantage, and it enjoys strong cash flows from its membership-based revenue model.

Full details of the offer and Viva Leisure’s business will be included in the Prospectus which has been lodged with the Australian Securities and Investments Commission (ASIC) and the ASX.

For more information visit www.vivaleisure.com.au


What’s Your opinion?


Please login to post your comments, or connect with

CBR Tweets

Sign up to our newsletter

Top
Copyright © 2019 Region Group Pty Ltd. All rights reserved.
the-riotact.com | aboutregional.com.au | b2bmagazine.com.au | thisiscanberra.com

Search across the site